Deutsche Bank's profit plunged 58% in 'challenging' markets

Net income at Deutsche Bank fell 58% in the first quarter of 2016
to €236 million (£183 million).

The bank had made €559 million in the same period (January to
March) last year.

While it sounds bad, it could have been about half a billion
euros worse – analysts expected a loss of €249 million, according
to a Reuters poll.

John Cryan, co-CEO of Deutsche Bank, said: “Financial markets
were challenging during the first quarter, largely reflecting
concerns about the outlook for the global economy."

"This uncertainty led to a decline in client activity in the
capital markets, and our revenues fell from the prior year, most
notably in our trading and corporate finance businesses. Our
results reflect these challenging conditions as well as the
impact of our strategic decisions to exit or reduce significantly
selected businesses,” Cryan said in a statement on Thursday.

The drag on revenue and profit came mostly from the investment
banking and markets division. Debt sales and trading
revenues were €2 billion euros, down 29% year-on-year. Equity
sales and trading revenues saw the same 29% drop to €728 million.

Deutsche Bank has had a volatile year.

The bank announced a new lineup at the top of the
markets business in November. Ram Nayak was appointed to lead
a new debt-trading unit that combined rates, credit, foreign
exchange, emerging-market debt, and structured-finance trading.
Sam Wisnia heads rates in Europe and the Americas.

It then found itself the subject of speculation in February as
investors fretted over its ability to pay the coupon on
contingent bonds, and credit default swaps on the bank's debt
widened dramatically.